Broadcom, Oracle shares slide as competition overcrowds AI space

Yahoo Finance Video and Brian Sozzi

December 13, 2025

In this video:

•                                       StockStory Top Pick 
  

  AVGO

  -0.40%

 ORCL  

 -5.40%  

Shares of Broadcom (AVGO) and Oracle (ORCL) continue to slide after these two AI trade players seemingly underwhelmed Wall Street investors with their latest earnings results and forecasts.

FedWatch Advisors founder and Chief Investment Officer Ben Emons discusses how broadening competition in the AI ecosystem is starting to weigh on key stocks.

To watch more expert insights and analysis on the latest market action, check out more Opening Bid.

Video Transcript

00:00 Speaker A

I think it comes down to Brian that that this the expectations for AI are so hyped up

00:06 Speaker A

that you know, you cannot even match expectations anymore with these blockbuster earnings earnings that Broadcom yesterday had. I mean their semiconductor revenues were up I believe 74% year on year.

00:18 Speaker A

And yet the stock sells off on that that that it isn’t good enough so to speak. And that makes you wonder like, you know, are we hitting here the peak in in AI optimism and sentiment?

00:26 Speaker A

Because what’s it going to take to really beat those expectations?

00:30 Speaker A

And as as as we’re talking about Lululemon too is another example, there’s more and more price competition coming back in the marketplace.

00:38 Speaker A

And that’s the same thing for the AI players, right? For example, another stock like Nvidia is going to lost luster because

00:46 Speaker A

it’s showing now that competition can catch up with a company like that as well. So,

00:51 Speaker A

I think for the broader space it means that if there’s more competition about AI, as we’re getting more and more adoption, it’s going to get more challenging for those who are in the leadership role there.

01:03 Speaker A

And that’s why some of these stocks like Oracle and and Barcom get punished.

01:08 Speaker A

And ultimately, I do think that investors come back to stocks like that because these companies do are are generating a lot of free cash flow and value.

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